Shine A Light …on… ‘JobKeeper’ Payment
As we continue to try to catch a breath from all the chaos going on with Coronavirus, we are still following along with the Australian Government’s third and latest stimulus package. This package focuses on the ‘Job Keeper’ payment, aimed at helping businesses keep their staff, which will be a lifeline for many people over the coming months.
* Note : this is ‘Job Keeper’ (with a K!!) … NOT to be confused with the Job Seeker payments being processed via Services Australia.
Here a quick overview of what it means:
- Employers and sole traders will be able to apply for a $1500 ‘job keeper’ flat payment per employee to keep paying their staff.
- To be eligible, most employers will need to prove they have lost 30% of income (requirements differ for larger businesses with $1b turnover).
- Those who work for non-for-profits and New Zealanders will also be eligible for the ‘Job Keeper’ payment
- The income threshold for the partner of someone who has lost their job has been raised from $48,000 to $79,000 a year.
- Workers who have already been stood down will be able to access the payment if they lost their job after March 1.
- The ‘Job Keeper’ wage subsidy will be a flat payment through the employer.
- All full time and part time staff are eligible.
- Casuals who worked for more than 12 months at the business are also eligible.
- There is no superannuation payable on this payment.
You should also know:
This payment will be paid in arrears. Employers are encouraged to keep paying employees, with the understanding the government will reimburse them $1,500 a fortnight, per employee, backdated to the date of the announcement.
The payments will flow from the first week of May and will be backdated to 30th March 2020.
Prime Minister Scott Morrison stresses that the engine of the economy needs to keep moving and understands the coming weeks may be tough.
If you are unable to fund payments to employees in advance, the Government supported low interest borrowing facility is being offered as a possible solution to consider. Banks are expediting a process with different criteria to provide a facility of up to $250,000.
More info will be added to the government’s website in the coming days.
How will it work?
The short answer is we don’t know. No information further than what is above has been released as yet as to how this process will work (once legislated) … this is likely to be midway through next week. From what has been shared to date, we expect there will be an introduction/update of current payroll processing procedures required for the tracking and reporting of the ‘Job Keeper’ payments. We are watching more news footage and webinars at the moment than we have all of last year to keep as up-to-date as possible … you can be sure we will advise you as soon as details are available.
We are here to help
We know that this is a difficult time for many people, but please remember we are here to help. We aim to help you navigate the issues this virus and its impacts raises.
We have templates available for you to send information to your employees, can provide estimates of expected credits via the Initial CashFlow Boost Stimulus Packages and will be developing programs and processes to assist in implementing and tracking these measures in your business.
If you have any questions about stimulus packages or your business in general, please get in touch with us.
We can set up a phone call or online meeting as we continue to work remotely.
Wishing you, your employees and your family all the best.